Exhibit 63
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 40

Multiple Choice

Exhibit 6.3
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { l l r l c } \text { Stock } & \mathbf { R } _ { \text {it } } & \mathbf { R } _ { \text {mt } } & \mathbf { a } _ { \mathbf { i } } & \text { Beta } \\\hline \text { Elliot } & 9.9 & 15.0 & 0 & 0.8 \\\text { Hemlick } & 9.1 & 8.0 & 0 & 1.1\end{array}$$ R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 6.3. What is the abnormal rate of return for Elliot when you consider its systematic risk measure (beta) ?

• A)-2.10%
• B)-2.00%
• C)5.20%
• D)14.10%
• E)None of the above

---

Definitions:

Import

The process of bringing goods or services into a country from abroad for sale.

Export

The process of sending goods or services produced in one country for sale in another country.

Labor-Abundant

Describes an economy or sector that has a relatively high supply of labor compared to capital.

Land-Scarce

A situation where the availability of usable land is limited, often leading to higher property values and intensified use of land.